Nvidia Halts Plan To Invest $100 Billion In OpenAI, WSJ Says

Group 1 - Nvidia Corp.'s negotiations to invest up to $100 billion in OpenAI have broken down, indicating a potential rift between two major players in the AI industry [1][2] - The discussions stalled due to concerns from some Nvidia insiders regarding the transaction, which was intended to support new data centers and AI infrastructure [2][3] - The initial agreement announced in September included a letter of intent for a strategic deal, aiming for 10 gigawatts of computing power, equivalent to New York City's peak electricity demand [3] Group 2 - Nvidia stated it has been OpenAI's preferred partner for the last 10 years and looks forward to continuing collaboration, although it did not comment on the current state of negotiations [4] - OpenAI is seeking to raise up to $100 billion in its current funding round, with Amazon in talks to invest up to $50 billion [5] - Nvidia has made other significant investments in AI, including a recent $2 billion investment in CoreWeave Inc., a cloud computing provider [5][6] Group 3 - Concerns have been raised about the sustainability of the AI boom due to circular deals, where companies invest in businesses that purchase their products [6] - Nvidia's CEO Jensen Huang dismissed these criticisms, stating that such investments represent a small portion of the total funding needed [6]